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Tipsheet

New York AG Files Lawsuit to Dissolve NRA

(AP Photo/Frank Franklin II, File)

UPDATE: President Trump reacts.

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ORIGINAL POST

New York Attorney General Letitia James filed a lawsuit on Thursday against National Rifle Association (NRA) executives with intent to dissolve the organization entirely. The lawsuit accuses NRA CEO Wayne LaPierre, as well as officers Wilson Phillips, John Frazer and Joshua Powell, of fraudulently directing funds to NRA insiders and favored parties. 

"The NRA’s influence has been so powerful that the organization went unchecked for decades while top executives funneled millions into their own pockets,” said James in a statement

"The NRA, through its Compensation Committee as it relates to LaPierre, Phillips and Frazer, and through LaPierre as it relates to Powell, violated these provisions in determining the compensation of the Individual Defendants. The salary, bonuses, other cash and non-cash compensation and other benefits to the Individual Defendants were excessive and constitute a waste of NRA’s charitable assets, and an illegal and unauthorized activity," the complaint reads. 

After outlining 18 causes of action against the defendants, the complaint enjoins the New York Supreme Court to dissolve the NRA, remove the defendants from their position and require them to make restitution for unlawful financial benefits.

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Although the NRA was incorporated in New York as a 501(c)(3) charitable organization, internal corruption may have cost up to $63 million in reduction of unrestricted net assets between 2015 and 2018 and more than $64 million in total waste. If proven, these activities could void the organization of its charitable status.

The District of Columbia also issued a complaint against the NRA and the NRA Foundation today, claiming that the foundation "allowed itself to be financially exploited through, among other things, unfair loans and management fee payments to the NRA." 

James promised in 2018 to investigate the NRA and began the official probe in February 2019. Throughout that time, she found a "Culture of Self-Dealing, Mismanagement, and Negligence."

"For these years of fraud and misconduct, we are seeking an order to dissolve the NRA in its entirety," James said in a press conference on Thursday.

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Here is the NRA's response:

The NRA has a tumultuous history with the state of New York's legal system.

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